Many British residents are 'stuck in a rental trap'

A growing number of people across the UK are finding themselves stuck in a rental trap with little to no potential for being able to buy their own home down the line because their finances are so bad.

Landlord insurance customers have welcomed strong figures across the past few years, thanks to the fact that the demand has remained high from tenants. This has largely come from the fact that it has been difficult to afford a first-time buyer's mortgage, with many facing the reality of requiring a 20 to 25 per cent deposit.

According to new data from Shelter though, there are 8.5 million people in England alone who are now living in rented accommodation, with many struggling to make ends meet as costs continue to rise.

A recent report from HomeLet said that the cost of renting has risen by 3.9 per cent in the last year alone across the UK. Shelter added that in England alone, there has been a rise of £300 in rental costs in the space of just 12 months for many tenants.

Landlords may soon be able to help those struggling to address this though, with the government usng the Budget this week (March 20th) to announce that there is to be an increase in the funding for the build-to-let sector. The new £1 billion pot will help to create a lot more affordable brand new homes for the private rented sector.

For many, Shelter said, this cannot come soon enough, after the organisation revealed that there are more than half of all tenants across England for whom having less than £100 left after they have paid their charges to landlords and all their bills is a regular reality.

Campbell Robb, chief ­executive of Shelter, said: "Rising rents are leaving people with little or nothing to save at the end of each month, giving them little chance of saving enough to climb on to the ­property ladder.